India announces $1 million to Indian Ocean fund for financing projects

BANGALORE: India today announced an additional funding of USD one million to make the Indian Ocean Rim Association for Regional Cooperation Special Fund an effective instrument for financing projects and studies of common interest among member-nations.

"To make the IOR-ARC Special Fund an effective instrument for financing projects and studies of common interest, India has decided to provide additional funding of USD one million to the fund," , External Affairs Minister S M Krishna told the Council of Ministers' Meeting of the 11th IOR-ARC here.

Describing piracy at seas as a "priority challenge", he stressed the need for building on the existing national, regional and multi-lateral measures to enhance coordination to combat it.

"Piracy is a priority challenge. It increases the direct cost of trade. It adds indirect costs through increased insurance premium and a human cost to many of our nationals involved in shipping industry," he said.

Krishna also emphasised the need for building functional relationship between Navies and Coast Guards to enhance security in Indian Ocean waters. "Our port and customs authorities, as well as our shipping firms, need to address issues of transport infrastructure and connectivity that hinder trade."

He said initiatives should be promoted to improve intra-regional trade among Indian Ocean countries, which has been dogged by poor connectivity, market complexities and inadequate trade facilitation.

"Our intra-regional investment flows are modest, though many of our economies are important destinations for FDI from outside of our region," he said.